Non-profits worried about changes to charity poker rules

Published 7:45 am Wednesday, November 13, 2013

Over the past three and a half years, Niles Community Schools has raised approximately $250,000 through the use of charity poker games held at Joey Armadillo’s in Niles.

Joseph Todd, a Niles track coach who uses charity gaming as a fundraiser, said the school district uses these “millionaire parties” to pay for everything from new uniforms to field trips to classroom electronics.

“I don’t know of any other way we could replace the money we get from it,” said Todd, who introduced the school to charity gaming more than three years ago. “It would really hurt us if we couldn’t use charity poker. I think you’d see a lot of programs going away or being diminished.”

Many local non-profits are worried this money might do just that in the near future.

The Michigan Gaming Control Board has proposed rule changes that many say would all but eliminate charity poker rooms in the state.

Rick Kalm, the control board’s executive director, said the rules would return accountability and control to the non-profits and charities, while cutting down on violations and illegal activity at poker rooms. He said the proposed rules could go into effect in early 2014.

“The charities own the license to conduct gambling to fundraise. They need to be accountable for that license. Self-reporting and regulation by charities has failed in the current environment of un-licensed poker rooms,” Kalm said.

Local charities are opposed to the proposed rule changes, saying they would damage their ability to raise money.

Lisa Wolff-Murdock, president of Niles Service League, said charity poker games account for about a fifth of the organization’s total budget. She said they raise anywhere between $1,000 and $3,000 during a four-night stretch at Joey Armadillo’s, a bowling alley, sports bar and restaurant located on South 11th Street in Niles.

“It just would be a shame to see that gone,” she said.

According to the state’s gaming control board, charity gaming revenue reported by non-profits grew from $7.9 million in 2002 to $197 million in 2011.

There are currently 42 locations hosting charity gaming events statewide. Joey Armadillos is the only one in Berrien County.

Brett Godsey, co-owner of Joey Armadillo’s, said they host a charity poker event every day for one of about 30 charities in the area.

Charities can host up to four events a year, with each event running a maximum of four days.

Over the past five years, Godsey estimates that they’ve helped generate close to $1 million for charities. The money, he said, is essentially split 50/50.

“If the gaming commission has their way it would be detrimental for us and charities,” Godsey said. “It would shut down the poker room probably and have a huge impact on our business. We would have a few people lose their jobs.”

Proposed rule changes would limit the number of days a place could hold a charity gaming event to 120 a year. Another rule change would make games end at midnight, whereas now they end at 2 a.m.

In September, Rep. Jeff Farrington, (R-Utica) introduced House Bill 4960 as an alternative to the rule changes proposed by the gaming control board. Farrington said the bill would allow for the regulation of charity poker rooms without hurting charities and sites that host the games.

“I know there are problems right now in the industry,” he said. “But let’s fix them and figure out a way to make sure charities are still taken care of.”

Local charities, the Michigan Charitable Gaming Association and the owner of Joey Armadillos said they support the legislation, which has been referred to the committee on regulatory reform.

“We are asking people to support bill 4960,” Todd said. “Call you local representative and let them know you support it too.”

Kalm said a public hearing would be held, possibly later this month, about the proposed rule changes.